Correlation Between Magnachip Semiconductor and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Magnachip Semiconductor and GRIFFIN MINING at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Magnachip Semiconductor and GRIFFIN MINING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magnachip Semiconductor and GRIFFIN MINING LTD, you can compare the effects of market volatilities on Magnachip Semiconductor and GRIFFIN MINING and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Magnachip Semiconductor with a short position of GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magnachip Semiconductor and GRIFFIN MINING.
Diversification Opportunities for Magnachip Semiconductor and GRIFFIN MINING
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Magnachip and GRIFFIN is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Magnachip Semiconductor and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD and Magnachip Semiconductor is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Magnachip Semiconductor are associated (or correlated) with GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Magnachip Semiconductor i.e., Magnachip Semiconductor and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Magnachip Semiconductor and GRIFFIN MINING
Assuming the 90 days horizon Magnachip Semiconductor is expected to under-perform the GRIFFIN MINING. In addition to that, Magnachip Semiconductor is 1.28 times more volatile than GRIFFIN MINING LTD. It trades about -0.05 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.12 per unit of volatility. If you would invest 90.00 in GRIFFIN MINING LTD on September 14, 2024 and sell it today you would earn a total of 82.00 from holding GRIFFIN MINING LTD or generate 91.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magnachip Semiconductor vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Magnachip Semiconductor |
| GRIFFIN MINING LTD |
Magnachip Semiconductor and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magnachip Semiconductor and GRIFFIN MINING
The main advantage of trading using opposite Magnachip Semiconductor and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magnachip Semiconductor position performs unexpectedly, GRIFFIN MINING can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Magnachip Semiconductor vs. LION ONE METALS | Magnachip Semiconductor vs. EMBARK EDUCATION LTD | Magnachip Semiconductor vs. Grand Canyon Education | Magnachip Semiconductor vs. Perdoceo Education |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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